While the Dow is climbing to all-time high, some of us maybe feeling annoyed with the lackluster performance of the Singapore stock market. As a comparison, the Straits Times Index is still 13.7% away from its all-time high that was in October 2007, 7 years ago.
In this period of 7 years, there are numerous events and surprises. All of which leading drastic movements of stock prices, that saw the STI crashing to a low of 1594, more than 50% loss from its all-time high. This crash occurred only 4 months after the STI reached its peak.
Most amateur investors would buy at the high and sell at the low. At the high, they do not want to miss out on the upcoming bull run and jump in without studying the fundamentals of the company that they invest in. Such companies are often of poor standards, only used as ......